Portugal president Aníbal Cavaco Silva on Sunday supported the current coalition government, saying they should stay till end of the term, ending weeks of political crisis in the country, which had led international actors to even threaten the country's €78 billion international bailout. "As the national salvation compromise was impossible to achieve, I consider that the best alternative solution is for the present government to remain in its functions, with reinforced guarantees of cohesion and solidity of the coalition, until the end of its term (in 2015)" Mr. Cavaco said. Further headlines were provided by Bloomberg, with Cavaco saying he "laments talks on ‘National salvation’ agreement failed to produce results", and that "agreement will eventually be imposed by reality in future."

Session in the Asia-Pacific to start the week opened with an early move higher in Yen that soon corrected to break even before Tokyo started trading, but then as soon as traders hit the floor the Yen rose again to as high as 99.57 of the USD/JPY pair. The Yen move became in broad USD weakness following Japan PM Abe's upper house win, taking EUR/USD to session highs at 1.3170, AUD/USD to 0.9228, and Cable to 1.5298. Nikkei index opened in the 14750 region but soon eased to break even shy of 14600. Gold and Silver broke higher above key $1300 resistance in case of Gold, while Oil remained above the $108 handle. Local share markets traded mixed with China mainland and Japan in the negative, while Australia and Korea still in the positive.https://support.fxcc.com/email/technical/22072013/

Upwards scenario: Apparently market sentiment is positive for the EURUSD as both moving averages are pointing up. Clearance of our resistance at 1.3178 (R1) would clear the way for an upside penetration towards to next visible targets at 1.3201 (R2) and 1.3224 (R3). Downwards scenario: Prolonged movement below the supportive measure at 1.3130 (S1) is required to activate downtrend expansion. Next aim on the way would be mark at 1.3105 (S2) and then final target could be met at 1.3081 (S3).

Upwards scenario: Further uptrend development is limited now to the next resistive measure at 1.5311 (R1). Clearance here is required to enable our interim target at 1.5341 (R2) en route to final aim at 1.5372 (R3). Downwards scenario: On the other hand, depreciation below the technically important support level at 1.5246 (S1) might lead to the correction formation on the short-term perspective. Possible targets lies at 1.5213 (S2) and 1.5182 (S3).

Upwards scenario: Possibility of market strengthening is seen above the resistance level at 100.18 (R1). Clearance here is required to validate next interim target at 100.36 (R2) and any further rise would then be targeting mark at 100.55 (R3). Downwards scenario: On the downside, support level at 99.80 (S1) limits possible downtrend expansion. Break here is required to enable lower target at 99.63 (S2) en route to final aim at 99.45 (S3).